Warning of higher-loan loss provisions and set to release its fourth quarter earnings reports on March 5th, HSBC confirmed the departure of its two top U.S. executives. Bobby Mehta, CEO of HSBC North America and CEO of HSBC Finance, along with Sandy Derickson, head of HSBC Bank USA and HSBC USA are out. Mehta also served as Chairman of HSBC Finance. Mehta joined HSBC Finance in 1998. HSBC acquired Household International in March 2003 for $14.8 billion. In March 2005, he was appointed to his most recent positions. HSBC named Douglas Flint to become non-executive Chairman of HSBC Finance. Brendan McDonagh, currently COO of HSBC Finance has become CEO. Derickson joined Household International in September 2000 as managing director and CEO of the company’s retail services business. Prior to joining HSBC, Derickson spent 24 years at GE Capital. She was promoted to group executive at HSBC Finance in 2002 and to vice chairman in April 2004. Paul Lawrence, head of Corporate, Investment Banking and Markets for North America, has been named to succeed Derickson. HSBC Finance has more than $26 billion in card loans. Delinquency (60 days+) for its VISA/MasterCard portfolio increased to 4.48% for the third quarter, compared to 4.10% in the prior quarter and 4.13% for 3Q/05. For complete details on HSBC’s performance, visit CardData ([www.carddata.com]).
HSBC 60+ DAY U.S. CARD DELINQUENCY
Source: CardData (www.carddata.com)